MicroStrategy Raising $900M To Buy BTC
More good news
The business intelligence firm announced that it is looking to acquire more Bitcoin through a sale of convertible notes. The notes will be sold to qualified institutional buyers in a private offering, with proceeds that can be as high as $1 billion if the initial purchasers decide to excercise in full their option to buy more notes.
The notes are being offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the notes and the shares of MicroStrategy’s class A common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and the notes and any such shares may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The offering of the notes is being made only by means of a private offering memorandum.
Source: microstrategy.com
The offering is expected to close on Friday according to MicroStrategy's official announcement.
The notes will be unsecured, senior obligations of MicroStrategy. The notes will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on February 15, 2027, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after February 20, 2024, MicroStrategy may redeem for cash all or a portion of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of MicroStrategy class A common stock has been at least 130% of the conversion price then in effect for a specified period of time ending on the trading day immediately before the date the notice of redemption is sent.
Source: microstrategy.com
MicroStrategy could soon have an additional 18.8k BTC with the token swinging around the $52k mark, which far exceeds the company's initial investment of $250M in August 2020 in terms of USD value, but still translates into less than 21k BTC tokens which is the amount the business intelligence firm bought last summer.
If the purchase goes according to plan, Microstrategy will own more than $3.4 billion worth of Bitcoin, which translates into approximately 90k BTC tokens, or 0.48% of Bitcoin's circulating supply.
About MicroStrategy Incorporated
MicroStrategy Incorporated is a business firm that provides business intelligence (BI), mobile software, and cloud-based services. The company was founded in November 1989.
MicroStrategy (Nasdaq: MSTR) is the largest independent publicly-traded business intelligence company, with the leading enterprise analytics platform. Our vision is to enable Intelligence Everywhere™. MicroStrategy provides modern analytics on an open, comprehensive enterprise platform used by many of the world’s most admired brands in the Fortune Global 500. Optimized for cloud and on-premises deployments, the platform features HyperIntelligence®, a breakthrough technology that overlays actionable enterprise data on popular business applications to help users make smarter, faster decisions.
Source: microstrategy.com
What it means for BTC and crypto in general
Maybe the news about MicroStrategy's investment-oriented decisions is one of the reasons driving BTC higher at the moment. BTC is currently trading at $52,239 and hit a new all time high of $52,541 earlier today.
BTC/USDT market depth on Binance is looking amazing at the moment, and BTC can easily explore the $55k mark within the next few days. Of course it's just speculation as there are many factors we have no way of predicting, but the signs are there and they look good.
I can't help but think that we are going to enjoy an amazing alt season in the next months given the ongoing developments and the pace at which the cryptocurrency industry has been attracting major attention lately.
Let's hope for the best!
Thank you for your attention
Alright guys, that's it for now. I sincerely hope you learned something new today. Thank you for taking the time to read those lines.
Just my two cents. This is by no means financial advice. Just sharing my personal views and experiences. Please do not take my word for your investment choices, and always do your own research.
Stay safe and have a good one,
@lordneroo
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